1. Entity E purchased a new vehicle two years ago for $50,000 which it has yet to place in service. The dealer offered Entity E $70,000 for it citing a chip shortage but Entity E declined. At what value should the vehicle appear in Entity Es accounting records?

a. $70,000

b. $50,000

c. $60,000

d. $0

2. The following information is available for Entity B for the year ended December 31, 2023. What is net income? Sales $ 95,000 Sales Returns and Allowances 4,600 Sales Discounts 3,200 Cost of Goods Sold 52,000 Selling and Admin Expense 7,000 Income Tax Expense 3,100 Interest Expense 1,000 Interest Revenue 450

a. $28,200

b. $24,550

c. $35,200

d. $27,650